Market Outlook for 21 February 2024

Nifty traded within a narrow range in Tuesday’s session but ended the day at new highs around 22200. The Bank Nifty index rallied higher and outperformed others to end the day above 47000 mark.

Nifty Today:

Nifty has just completed a time-wise corrective phase where it consolidated within a range in last one month. The index has surpassed the swing highs and has resumed the broader uptrend. The Bank Nifty index too surpassed its resistance and showed signs of a short term upmove. The RSI readings on the daily chart of both Nifty as well as the Bank Nifty hints at a positive momentum and hence, we expect this trend to continue.

If we look at the F&O data, FII’s have reduced some of their net short positions in the index futures segment and in the options segment, put writing was seen in Nifty at 22000 strike. Thus, 22000-21900 will be seen as the immediate support for the index while positional support base has shifted higher to 21600. On the higher side, the upmove could continue towards 22450-22500 in the near term which is the extension levels added to the recent swing low. 

                          Bank Nifty witnesses a catch up move to cover up recent underperformance

Hence, traders are advised to continue to trade with a positive bias until any signs of reversal seen.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: